In the amended definition of Factory under Section 2(12), the concept of 'wages' and 'power'have been deleted.section 2(12) (a) has been modified and 2(12) (b)has been deleted.
The amended definition reads as follows:
2(12) Factory: "factory" means any premises including the precincts thereof whereon ten or more persons are employed or were employed on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of Mines Act 1952 or a railway running shed.
The effect of this amendment came in to existence from 1st day of June 2010
is that a premises engaged in a manufacturing process and employing 10 or more persons stand covered under the Act. With the deletion of the words 'wages', all employees employed irrespective of payment of wages can now be counted for the minimum number of 10.
Deletion of the words 'power' and deletion of clause (b) makes all manufacturing units coverable irrespective of usage of power, if they employ 10 or more persons.
With this amendment, more number of units are expected to come in to the fold of ESI from 1st June, 2010.
From India, Hyderabad